Wednesday, January 2, 2013

Snakes & Ladders – How will you manage your staff against the plans you made for 2013?

The only thing you know for certain
about the budget, said an old mentor of mine, is that it’s wrong.

One way or another, you’re going
to have issues with the plans you made in November for the year ahead. Not
surprising, given that you aimed to somehow foresee the next year’s market
conditions, predict the performance of your customers and anticipate everything
from super storms to the attrition of key personnel. Then you reconciled this guess work with your
shareholders’ aspirations – which are seldom modest or undemanding – to produce
‘the plan’.

Beyond the obvious problem – the fact
that you have no idea if the reality will render the theory absurd – which you
can’t waste your time worrying about, you have a major concern that you can and
must address:

How will the ever present plan,
and perceptions of success and failure, affect your staff’s actual performance?

Whatever you business, and engineering staffing is a perfectly good example, you have
some ladders to take advantage of and a number of snakes to avoid in managing productivity.

Ladder 1

New Year Urgency

It’s simple. Your well rested
staff return to work fired up, full of resolutions and raring to go. Success
follows. Happy days.

Snake 1

New Year Attrition

Not everybody translates their ‘New
year – new start’ positivity into hard work for you. January is the biggest month for hiring and job seeking. Right
now one of your key staff is planning to make a fresh start of a different kind
this year. You are never more vulnerable to turnover among strong performers
than you are in January. Have some conversations and make sure you know how
your top people are feeling.

Ladder 2

Motivation increases from strong start

So Q1 has gone great. By and
large your staff over performed. The atmosphere is buzzing and there’s a great
deal of confidence about the year ahead. You can harness this to drive greater
productivity. Increase the optimism through the promise of additional rewards. Share
some of the results of the over performance, you might see it again in Q2.

Snake 2

Complacency sets in as your staff hit the cruise control button

Some will use success to strive
for more success, others will use success as a justification for slowing down.
Again your answer is in adjusting rewards. You can’t use the stick for someone
who’s overperformed, but you can switch the carrot out for something slightly
larger and more juicy. Increase the performance rewards at the highest
thresholds and motivate people to excel further.

Ladder 3

Fostering long term development

When you’re on target, you have
the opportunity to invest time and energy in developing your staff. If you know
they are going to hit targets, you can spare a little time for training, team
building and all the other things that are, conversely, the first casualties
when you begin to slip behind. When things are going well this year, give
serious consideration to investing a little energy in longer term productivity.
If you don’t take advantage of successful times to do this, you never will do
it.

Snake 3

Entitlement increases from ‘high value / high maintenance’ mentality

Many a trajectory has begun with
early success, followed by plateau and then freefall – induced by the early
success itself. A proportion of the people who work with you will take pride in
their success over the line and become entitled. I’m contributing all this, I should be getting more. I’m better than
they are, I should be treated better. These people need me more than I need
them. The worst thing about this reaction to success is that it can inflict
collateral damage on other staff. Egotism is a virus and it spreads quickly. If
you look to reward high performers early with extra benefits to reach for and
investment in their skills, they will feel rewarded in both the short term and
long term. Entitlement is never just the result of performance, it is the
result of performance combined with a lack of perceived appreciation.

Ladder 4

A definition of minimum acceptable performance is understood and you
can manage to it

The plan allows you to manage
underperformance, because of clearly understood targets that are either met or
not met. If they are not met, you have a very clear mandate to chase good
performance, or to let people go accordingly. The threat of failure can be a
great motivator and if you’ve got an agreed threshold, there is never any ambiguity.
Make sure the staff understand the importance of accomplishing targets and then
dig in to the work of helping them get there, even if it means reforecasting to
meet external challenges.

Snake 4

Doom, gloom and dismal prospects will never inspire improved
performance.

If your staff are chasing after a
plan so unrealistic as to be entirely unachievable they will not be motivated
by it and it might as well not be there. The double threat is that they will
hold you responsible for signing off on the budget in the first place. Maybe you
were trying to please shareholders; maybe you were just wholly unrealistic. It
doesn’t matter – there’s a massive burden to carry everyday and you gave it to
them. Sure, they accepted it, but what other choice did they have? If all your
staff have to look forward to is one round of meetings after another where they
are asked why they are so far behind the forecast, they will not stick around
to endure it; they’ll just go somewhere where they can get an even break. And you
know that regardless of the plan, they may just be performing better than you
honestly expected.

There are many more ladders and
many more snakes and I’d be fascinated to hear your own versions. The bottom
line is that you’re going to play this game whatever happens; your budget will
either contribute to success or to failure. Which way it goes is up to you.